India's Central Bank Delivers Fifth Consecutive Rate Hike

India’s central bank raised its benchmark interest rates for the fifth consecutive meeting on Wednesday.

The Monetary Policy Committee voted 5-1 to hike its key interest rate, the repo, by 35 basis points to 6.25 percent from 5.90 percent, with immediate effect, Governor Shaktikanta Das said.

The bank had previously raised the rate by a more aggressive 50 basis points at the September meeting. The Reserve Bank has raised rates by a cumulative 225 basis points since May.

The MPC also voted 4-2 to remain focused on withdrawal of accommodation.

The central bank projected economic growth for the current financial year 2022-23 at 6.8 percent.

RBI maintained its consumer price inflation forecast at 6.7 percent for the current year.

Consumer price inflation weakened to 6.77 percent in October from a five-month high of 7.41 percent in September.